When bad news came down the pipeline that costs for the Lake Michigan water sourcing project are running about $100 million over projections, Yorkville eagerly hoped the next contracted bid would bring good news.

Yorkville currently is eyeing $224.4 million in project costs, including all eligible projects, up from previous estimates of around $170 million.

A Water Infrastructure Finance and Innovation Act (WIFIA) loan can support $179.5 million of those costs, leaving the remaining 20% to be financed through Yorkville’s bond issuance and Illinois Environmental Protection Agency loan proceeds.

The joint project is funded by Yorkville, Oswego and Montgomery, with around $400 million in shared overall costs to extend water infrastructure from Naperville out to their respective cities.

“We weren’t sure if it was going to be a trick or a treat,” Yorkville Mayor John Purcell said of the bid deadline falling on Oct. 31. at the Nov. 10 city council meeting.

“Fortunately, it was sweet. Two bids were opened by the DuPage Water Commission with an estimate of $40 million and they came in at a little over $23 million. That’s $17 million under estimates. That’s great news. Let’s hope the next ones come in that way as well,” Purcell said.

Once all the water pipes are constructed and connected, the first Lake Michigan water should reach Yorkville residents by 2028. The city said the transition was necessary to sustainably accommodate the area’s booming population.

Even with engineering work-arounds and additional lower-than-estimated bids chipping away at the total costs, Yorkville has already had to apply for a larger loan package to accommodate the increases.

The city recently approved water rate increases for Yorkville water users for each of the next five years to help pay for the project.

Still, City Administrator Bart Olson said the city is currently “re-evaluating the plan” to determine if larger increases are necessary.

As part of Yorkville’s agreement with the DuPage Water Commission, the city needs to overhaul its water infrastructure, both extending its reach and capacity intake, and reducing amounts of water loss from things like water main breaks and water inefficiencies.

The city previously received an $18 million low-interest IEPA loan to complete both the 2025 Water Main Replacement Program and the North Receiving Station and Storage Tank Project. The loan carried a fixed interest rate of 1.87% over a 30-year term.

The 2025 Water Main Replacement is a $5.27 million project, centered on replacing old pipelines south of the Fox River, west of Route 47, and north of Blaine Street.

The North Receiving Station and Storage Tank Project, runs up a $18.63 million price tag, and will significantly increase the city’s water intake capacities. This project includes constructing the Grande Reserve Water Treatment Plant and a two-million-gallon water tank on Eldamain Road, north of Corneils Road.

To begin construction on next year’s legs of the project, the city applied for and received a $5.39 million IEPA loan, at a fixed interest rate of 2.16% over 30 years.

Next year, the 2026 Water Main Replacement Program is replacing deteriorated cast-iron water mains along Adrian, Blaine, Illini, Walter, Olsen and East Ridge streets, according to city documents.

The work also includes water mains in the Countryside area and the water main stretching along Illinois Route 47 out to the Penny Lane Apartments.

Another $2.6 million can be applied for through the loan program if costs run-over.

Project contracts for the construction are expected to be bid out by July of next year or earlier.